Among them include giving the Welsh Assembly full powers over smaller levies, such as landfill tax, stamp duty, business rates and aggregates levy, while Air Passenger Duty should be devolved for long-haul flights initially.

It also says responsibility for income tax should be shared between Cardiff Bay and Westminster, although corporation tax should not be devolved unless that power is given to Scotland and Northern Ireland.

The report also makes a number of recommendations in relation to borrowing powers, including the Assembly being able to borrow to support key infrastructure projects.

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Commission chairman Paul Silk said the cross party group had worked closely as a team over the past year and had all agreed upon the recommendations that had been made.

"We firmly believe these would benefit Wales and strengthen its democracy and economy," he said.

"Our proposals would provide the Welsh Government with an important set of fiscal levers and would enable political parties in Wales to offer people real fiscal choices.

"What we are recommending is significant and historic."

The Commission on Devolution in Wales was set up last year by the then Secretary of State for Wales Cheryl Gillan.

Its remit was divided into two parts.

During Part I, the Commission was asked to consider the National Assembly's current financial powers in relation to taxation and borrowing and report by autumn 2012.

Although two issues were excluded from this first stage - namely questions about the future of the Barnett formula and "fair funding" as well as the use of the Assembly's existing borrowing powers.

Officials say these have been taken forward through separate intergovernmental talks.

Secretary of State for Wales David Jones said he was grateful to Paul Silk and all the commissioners for their hard work in bringing together this report.

He added: "I know the Commission have sought opinions from across Wales, so this report is reflective of a very wide range of views on the future fiscal responsibilities that the Welsh Assembly and the Welsh Government should hold.

"The Commission is supported by all four political parties in the Assembly and the publication of the report today demonstrates the importance of cross-party working."

Mr Jones said he would consider the report's recommendations, discuss with relevant colleagues across Government and respond formally in due course.

Chief Secretary to the Treasury Danny Alexander said he was looking forward to reviewing the Commission's recommendations.

He added: "I am also looking forward to working with the Welsh Government and all parties in the Welsh Assembly to deliver an ambitious outcome that best meets the needs of the people of Wales."

The Commission will next begin its work on Part II - reviewing the current non-financial powers of the National Assembly for Wales.

It will report on these findings by spring 2014.

The Electoral Reform Society warned the current size of the Assembly would need to be reviewed in light of any additional demands.

It says consideration needs to be given on how many AMs would be needed in future to ensure ministers are properly accountable for their £15 billion Welsh Government budget.

Director Steve Brooks said: "Over the years, additional powers have been devolved to the Assembly including full law-making powers last year.

"While this is a welcome maturing of devolution, the fact that 13 of our 60 AMs are either ministers or preside over Assembly business means that the number of government backbenchers and opposition members able to hold the Welsh Government to account is limited.

"Voters across Wales will want to know that ministers are using any new tax and borrowing powers responsibly.

"We need a strong National Assembly that's able to hold the Government's feet to the fire, and scrutinise how taxes are raised, public money is spent, and laws made."